Here’s Why Mobility Startups Should Enter Germany

While attempts to disrupt the mobility industry have been around for a long time, innovation is starting to pick up in 2022.

With hundreds of fledgling companies trying to enter this lucrative market, the business environment is full of both competition and opportunity. One important consideration for any entrepreneur attempting a mobility startup is the question of where to set up their base and which markets to enter next.

What makes Germany a strategically sound choice for entrepreneurs looking to make waves in the mobility industry? Let’s take a look.

Germany has a World-Class Automotive Industry and Strong Competence in Engineering

German automobiles are known internationally for their high reliability and safety, as well as good design. This example of German excellence is largely due to the country’s strong research and development infrastructure, well-organised value chain, and highly competent workforce, among other assets.

Germany also boasts a high concentration of manufacturing and assembly facilities, further strengthening collaboration across value chains, enabling the economic powerhouse to outperform the automotive industries of other nations while also leading the region in automobile production and sales.

Germany is Capitalising on the Growing Trend of Electric Mobility

The country is also bolstering its support of electric mobility through a variety of subsidies and regulations.

For instance, a new law went into force stipulating that infrastructure for charging electric vehicles be present in all new and refurbished buildings. These efforts are paying off as evidenced by the growing number of electric vehicles within the country. Sales for electric vehicles grew by almost 300 per cent between 2020 and 2021.

According to the Centre for Solar Energy and Hydrogen Research Baden-Württemberg, Germany is currently the world’s second-largest market for electric vehicles.

The increasing interest in electric vehicles is an important observation for mobility startups, as it may guide firms on how to develop their products, services, and business models, and capitalise on consumer preferences in the near future.

Germany Benefits from a Good Geographical Location and Political Developments that Favour the Automotive Industry

Given its position within the heart of Europe, as well as its membership in the European Union and the Eurozone, Germany enjoys the ability to do business without certain obstacles such as trade barriers and differing currencies. These advantages further propel the country’s automotive industry, allowing greater growth opportunities over the long term.

A factor that’s perhaps even more advantageous than its excellent geographical location is that mobility startups in Germany also benefit from its business-friendly economic policies with initiatives from the government to bolster the sector.

Strong support from the government encourages innovation, enabling startups and established firms in the mobility sector to experiment with and refine their products and services through R&D.

In addition, the German government has planned on a 100 per cent increase in purchase incentives for battery-operated electric vehicles (BEVs), which translates to a cash grant of 6,000 euros for certain BEVs that are purchased.

This move is part of the overall plan to support the country’s recovery from the COVID pandemic – a plan that includes 130 billion euro of economic stimulus fueling growth in the mobility sector.

These initiatives signal the German government’s readiness to support its automotive industry – making Germany an attractive market to enter for entrepreneurs in the mobility startup scene.

Are You Ready to Expand into Germany?

Scaler8 provides a supportive network of partners and mentors, as well as business experience and knowledge, to help Asian startups maximise their potential.

Our services are supported by German Entrepreneurship, an innovation service provider with connections in Germany and Asia. We are also part of Singapore’s Global Innovation Alliance.

Are you ready to take a great step forward for your startup? Contact us here and let us help you achieve your business goals.

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